Posted 3/6/2024, 3:57:48 PM
Foot Locker Shares Plunge as Investments Delay Profit Targets, Despite Solid Sneaker Demand
- Foot Locker shares plummeted 27% as the retailer projected 2024 profit below Wall Street expectations
- Planned investments across the business to boost demand will ramp up, hurting profit margins
- Despite solid holiday quarter, reaching long-term profit margin target postponed 2 years to 2028
- Foot Locker not resuming dividends and expects another year of significant investment in 2024
- Steady demand seen for top sneakers like Nike's Air Force 1s and Dunks, Adidas and New Balance